Liquidity providers deposit funds into zkSwap and receive trading fees from traders (supply-side fees). Traders receive token rewards for their trades through the Swap2Earn incentive program (token incentives).

zkSwap Finance is a non-custodial Swap-to-Earn DeFi exchange protocol built on zkSync Era (originally a fork of Uniswap). zkSwap Finance was founded by pseudonymous ThunderNoah, etc., and launched in 2023. 

ZF token holders own and govern the protocol via Snapshot vote. They currently take a cut of the total trading fees paid by traders (revenue).

governance

github

twitter

discord

etherscan

website

Exchanges (DEX)

zkSwap Finance

# zkSwap Finance Expenses Methodology

## 1. Overview

The zkSwap expenses metric measures the total USD value of token incentives distributed by the zkSwap protocol on zkSync Era. This includes rewards claimed by users through the Swap2Earn program and tokens minted to reward distribution contracts for DAO staking and liquidity provision incentives. The metric represents the protocol's operational expense in token-based user incentives, calculated daily and expressed in USD.

## 2. Data sources

- **zkSync Era event logs**: Parsed `Claimed` events from the zkSwap Swap2EarnRewarder contract capturing user reward claims
- **zkSync Era token transfer events**: `Transfer` events for ZF token (`0x31c2c031fdc9d33e974f327ab0d9883eae06ca4a`) showing mints from the null address to reward distribution contracts
- **End-of-day token price feeds**: USD price data for ZF tokens used in currency conversion
- **Token metadata**: Decimal precision information for accurate token amount calculations
- **Chain availability configuration**: Rules determining which chains and time periods have valid data

## 3. Step-by-step calculation

### Component A: Swap2Earn reward claims
- **Purpose**: Captures user-claimed rewards from the Swap2Earn program
- **Logic**: Extracts `Claimed` events from the zkSwap Swap2EarnRewarder contract on zkSync Era. Each event represents a user claiming ZF token rewards earned through trading activities. The component records the claimer's address, claim amount, and transaction details. All claims are categorized under the 'Swap2Earn' account name within the 'Exchange AMM' business line and 'dex' business segment.
- **Key fields**: `address` (claimer), `amount` (ZF tokens claimed), `block_timestamp` (claim time), `transaction_hash` and `log_index` (event identifiers)

### Component B: Reward distribution mints
- **Purpose**: Captures ZF tokens minted to reward distribution contracts
- **Logic**: Identifies `Transfer` events where ZF tokens are minted (transferred from the null address `0x0000000000000000000000000000000000000000`) to two specific reward distribution contracts. The DAO staking contract (`0x4ca2ac3513739cebf053b66a1d59c88d925f1987`) receives tokens categorized as 'DAO Staking Reward', while the liquidity incentives contract (`0x9f9d043fb77a194b4216784eb5985c471b979d67`) receives tokens categorized as 'Liquidity Reward'. Only mints to these specific addresses are included.
- **Key fields**: `to_address` (recipient contract), `value` (ZF tokens minted), `block_timestamp` (mint time), `from_address` (must be null address)

### Component C: Token incentives aggregation
- **Purpose**: Combines all reward types into a unified daily metric
- **Logic**: Unions the Swap2Earn claims and reward mints datasets, then groups by day using timestamp truncation. Each record maintains its categorization (Swap2Earn, DAO Staking Reward, or Liquidity Reward) and includes chain identification, business classification, and token details. The aggregation preserves individual transaction granularity while organizing by daily boundaries.
- **Key fields**: `timestamp` (daily), `chain_id`, `account_name` (reward type), `account_address` (recipient), `token_address`, `token_incentives` (amount)

### Final aggregation
- **Combining components**: All token incentive records are processed together in a single dataset, maintaining their original categorization and recipient information
- **Currency conversion**: ZF token amounts are converted to USD using end-of-day price feeds, with automatic correction for token decimal precision to ensure accurate dollar values
- **Time aggregation**: Data is aggregated to daily boundaries using timestamp truncation, with each day containing the sum of all reward claims and mints that occurred during that 24-hour period
- **Final calculation**: The expenses metric equals the total USD value of all token incentives (Swap2Earn claims + DAO staking mints + liquidity reward mints) distributed on each day. Missing dates are filled with zero values to maintain consistent time series data, and results are filtered based on chain availability rules.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Total project operating and incentive expenses.

zkSwap FinanceZF

Expenses

Expenses

Competitive landscape